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Ch 2 -1Copyright 2009 Pearson Education, Inc.

Chapter 2

The Business Vision & Mission

Strategic Management:

Concepts & Cases

12thEdition

Fred David

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Ch 2 -2Copyright 2009 Pearson Education, Inc.

Chapter Outine

What Do We Want to Become?

What Is Our Business?

Importance of Vision and Mission Statements

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Ch 2 -Copyright 2009 Pearson Education, Inc.

Chapter Outine !cont"d#

Characteristics of a Mission Statement

Components of a Mission Statement

Writing & Evaluating Mission Statements

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Ch 2 -!Copyright 2009 Pearson Education, Inc.

The last thing IBM needs right now is avision. (July 1993)

Vision

What IBM needs ost right now is a

vision. (Mar!h 199")

#ouis V! "erstner# $r!# CEO# IBM Corporation

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Ch 2 -"Copyright 2009 Pearson Education, Inc.

Vision

%greement on the asic vision for 'hich the

firm strives to achieve in the long run is

criticall( important to the firm)s success!

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Ch 2 -#Copyright 2009 Pearson Education, Inc.

$%hat do e ant to 'ecome()

Vision

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Ch 2 -$Copyright 2009 Pearson Education, Inc.

Comprehensive

Mission Statement

Vision

Cear Business

Vision

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Ch 2 -%Copyright 2009 Pearson Education, Inc.

Shared Vision *

Creates commonalit( of interests*educe dail( monoton(

+rovides opportunit( & challenge

Vision & Mission

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Ch 2 -9Copyright 2009 Pearson Education, Inc.

Vision Statement E+ampes

Tyson $oods% vision is to &e the world%s 'irst

!hoi!e 'or rotein solutions while aii*ingshareholder value.

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Ch 2 -10Copyright 2009 Pearson Education, Inc.

+eneral Motors% vision is to &e the world

leader in transortation rodu!ts and related

servi!es.

Vision Statement E+ampes

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Ch 2 -11Copyright 2009 Pearson Education, Inc.

,esi-o%s resonsi&ility is to !ontinually

irove all ase!ts o' the world in whi!h we

oerate # environent so!ial e!onoi! #

!reating a &etter toorrow than today.

Vision Statement E+ampes

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Ch 2 -12Copyright 2009 Pearson Education, Inc.

/ell%s vision is to !reate a !oany !ulturewhere environental e!ellen!e is se!ondnature.

Vision Statement E+ampes

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Ch 2 -1Copyright 2009 Pearson Education, Inc.

#,-. of all companies have used a

mission statement in the previous five

(ears

Mission Statements

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Ch 2 -1!Copyright 2009 Pearson Education, Inc.

$%hat is our 'usiness()

Mission Statements

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Ch 2 -1"Copyright 2009 Pearson Education, Inc.

Mission Statements

/Enduring statement of purpose

/Distinguishes one firm from another

/Declares the firm)s reason for eing

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Ch 2 -1#Copyright 2009 Pearson Education, Inc.

Mission Statements

/Creed statement

/Statement of purpose

/Statement of philosoph(

/Statement of usiness principles

,so re-erred to as:

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Ch 2 -1$Copyright 2009 Pearson Education, Inc.

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Ch 2 -1%Copyright 2009 Pearson Education, Inc.

*eveal 'hat an organi0ation 'ants to e

and 'hom it 'ants to serve

Mission Statements

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Ch 2 -19Copyright 2009 Pearson Education, Inc.

Essential for effectivel( estalishing

o1ectives and formulating strategies

Mission Statements

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Ch 2 -20Copyright 2009 Pearson Education, Inc.

Vision & Mission

Man( organi0ations develop oth vision &mission statements

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Ch 2 -21Copyright 2009 Pearson Education, Inc.

Vision & Mission

+rofit & vision are necessar( to effectivel(

motivate a 'or2force

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Ch 2 -22Copyright 2009 Pearson Education, Inc.

Vision & Mission

Shared vision creates a communit( of

interests

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Ch 2 -2Copyright 2009 Pearson Education, Inc.

Deveoping Vision & Mission

Clear mission is needed efore alternative

strategies can e formulated andimplemented

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Ch 2 -2!Copyright 2009 Pearson Education, Inc.

Deveoping Vision & Mission

+articipation from diverse managers is

important in developing the mission

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Ch 2 -2"Copyright 2009 Pearson Education, Inc.

$leetwood 0nterrises will lead the re!reationalvehi!le and anu'a!tured housing industries inroviding uality rodu!ts with a assion 'or!ustoer2driven innovation. We will ehasi*etraining e&ra!e diversity and rovide growth

oortunities 'or our asso!iates and our dealers.We will lead our industry in the ali!ation o'aroriate te!hnologies. We will oerate at thehighest levels o' ethi!s and !olian!e with a 'o!uson eelary !ororate governan!e. We will deliver

value to our shareholders ositive oerating resultsand industry2leading earnings.

Mission Statement E+ampes

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Ch 2 -2#Copyright 2009 Pearson Education, Inc.

We asire to ae ,esi-o the world%s reier!onsuer rodu!ts !oany 'o!used on!onvenient 'oods and &everages. We see torodu!e healthy 'inan!ial rewards 'or investors aswe rovide oortunities 'or growth and

enri!hent to our eloyees our &usinessartners and the !ounities in whi!h we oerate.4nd in everything we do we strive to a!t withhonesty oenness 'airness and integrity.

Mission Statement E+ampes

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Ch 2 -2$Copyright 2009 Pearson Education, Inc.

/ell%s ission is to &e the ost su!!ess'ul!outer !oany in the world at delivering the&est !ustoer eerien!e in arets we serve. Indoing so /ell will eet !onsuer ee!tations o'highest uality5 leading te!hnology5 !oetitive

ri!ing5 individual and !oany a!!ounta&ility5&est2in2!lass servi!e and suort5 'lei&le!ustoi*ation !aa&ility5 suerior !ororate!iti*enshi5 'inan!ial sta&ility.

Mission Statement E+ampes

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Ch 2 -2%Copyright 2009 Pearson Education, Inc.

,ro!tor 6 +a&le will rovide &randed rodu!tsand servi!es o' suerior uality and value thatirove the lives o' the world%s !onsuers. 4s aresult !onsuers will reward us with industryleadershi in sales ro'it and value !reation

allowing our eole our shareholders and the!ounities in whi!h we live and wor to roser.

Mission Statement E+ampes

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Ch 2 -29Copyright 2009 Pearson Education, Inc.

4t 7%8real we &elieve that lasting &usinesssu!!ess is &uilt uon ethi!al standards whi!hguide growth and on a genuine sense o'resonsi&ility to our eloyees our !onsuersour environent and to the !ounities in whi!h

we oerate.

Mission Statement E+ampes

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Ch 2 -0Copyright 2009 Pearson Education, Inc.

.mportance o- Mission

Mission

/esource ,ocation

0nanimit o- urpose

Organi3ationa Cimate

Foca oint -or %or4

Structure

Bene-its -rom a strong mission

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Ch 2 -1Copyright 2009 Pearson Education, Inc.

Broad in scope

5enerate strategic

aternatives

6ot over speci-ic

/econcies interests among

diverse sta4ehoders

Fine 'aanced 'eteen

speci-icit & generait

Broad in scope

5enerate strategic

aternatives

6ot over speci-ic

/econcies interests among

diverse sta4ehoders

Fine 'aanced 'eteenspeci-icit & generait

E--ective Missions

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Ch 2 -2Copyright 2009 Pearson Education, Inc.

,rouse positive -eeings &

emotions

Motivate readers to action

5enerate -avora'e

impression o- the -irm

,rouse positive -eeings &

emotions

Motivate readers to action

5enerate -avora'e

impression o- the -irm

E--ective Missions

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Ch 2 -Copyright 2009 Pearson Education, Inc.

/e-ect -uture groth

rovide criteria -or strategseection

Basis -or generating &

evauating strategic options

,re dnamic in nature

/e-ect -uture groth

rovide criteria -or strateg

seection

Basis -or generating &

evauating strategic options

,re dnamic in nature

E--ective Missions

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Ch 2 -!Copyright 2009 Pearson Education, Inc.

Natural EnvironmentalPerspectiveIs Your Firm Environmentally Proactive? ,reservingthe natural

resources is good

&usiness3

*eactive environmentalpolicies can e

e4pensive

+roactive policies force

companies to innovateand upgrade processes

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Ch 2 -"Copyright 2009 Pearson Education, Inc.

De-ine hat the organi3ation is

De-ine hat it aspires to 'e

7imited to e+cude some ventures

Mission & Customer

Orientation * Vern Mc5innis

Broad enough to ao -or groth

Distinguishes -irm -rom a others

Stated cear * understood ' a

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Ch 2 -#Copyright 2009 Pearson Education, Inc.

,nticipates customer needs .denti-ies customer needs

rovides product8service to satis- needs

Mission & Customer

Orientation

,n E--ective Mission Statement *

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Ch 2 -$Copyright 2009 Pearson Education, Inc.

,--ects deveopment o- vision & mission

/esponsi'iities to * Consumers

Environmentaists

Minorities

Communities

Socia oic & Mission

Manageria phiosoph shapes socia poic *

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Ch 2 -%Copyright 2009 Pearson Education, Inc.

Socia oic & Mission

Social polic( should e integrated in all

strategic5management activities

Mission should conve( the social

responsiilit( of the firm

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Ch 2 -9Copyright 2009 Pearson Education, Inc.

Mission Statements

6! C7S

8! 9nited +arcel Service

:! Whole ;oods Mar2et

=! %lcan

8--> Most %dmired in Social *esponsiilit(

! @*C World'ide

>! Staruc2s

A! International +aper

,! Vulcan Materials

6-!Walt Disne(

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Ch 2 -!0Copyright 2009 Pearson Education, Inc.

Mission Statements

6! Visteon

8! Dana

:! C%

=! ;ederal5Mogul

8--> east %dmired in Social *esponsiilit(

! %rvin Meritor

>! 7untsman

A! avistar International

,! (ondell Chemical

6-!o(s * 9s

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Ch 2 -!1Copyright 2009 Pearson Education, Inc.

2+ average return on sharehoders" e9uit ositive reationship to compan per-ormance

;< higher return on certain -inancia measures

Vision & Mission

/esearch resuts are mi+ed= hoever= -irms

ith -orma mission statements genera

see a:

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Ch 2 -!2Copyright 2009 Pearson Education, Inc.

Global PerspectiveSocial Policies on Retirement: Japan Versus theorl! aor shortages due to

aging population

Shortages can e met (immigration

7istorical arriers toimmigration in $apan leadto significant economicprolems

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Ch 2 -!Copyright 2009 Pearson Education, Inc.

Mission

Components

Customers

Mar4ets

Empoees

u'ic.mage

Se->Concept hiosoph

Surviva=

5roth=

ro-its

roducts or

Services

Technoog

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Ch 2 -!!Copyright 2009 Pearson Education, Inc.

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Ch 2 -!"Copyright 2009 Pearson Education, Inc.

Mission Statement Evaluation Matri4

COMO6E6T COMO6E6T COMO6E6T COMO6E6T COMO6E6T

Organization CustomersProducts

or Services Markets

Concern forSurvival,Growth,

Profitability Technology

Feetood Ent? @es @es 6o @es @es

Ben & Aerrs 6o @es @es 6o @es

/oa Cari''ean @es 6o 6o 6o 6o

De @es @es @es @es @es

roctor & 5am'e @es 6o @es 6o @es

7"Orea 6o 6o 6o 6o 6o

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Ch 2 -!#Copyright 2009 Pearson Education, Inc.

Mission Statement Evaluation Matri4

COMO6E6T COMO6E6T COMO6E6T COMO6E6T

Organization Philosohy Self!

ConcetConcern forPublic "mage

Concern for#mloyees

Feetood Ent? @es @es 6o @es

epsiCo @es 6o @es @es

/oa Cari''ean @es @es 6o @es

De @es @es @es 6o

roctor & 5am'e 6o @es @es @es

7"Orea 6o @es @es @es

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Ch 2 -!$Copyright 2009 Pearson Education, Inc.

Fe( erms & Concepts

For /evie !Chapter 2#

Concern -or Empoees Customers

Concern -or u'ic .mage Mar4ets

Surviva= 5roth= &

ro-ita'iit

Mission Statement

Components

Creed Statement Manageria hiosoph

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Ch 2 -!%Copyright 2009 Pearson Education, Inc.

Fe( erms & Concepts

For /evie !Chapter 2#

Se->Concept Sta4ehoders

Socia oic Vision Statement

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mechanical# photocop(ing# recording# or other'ise# 'ithout the prior 'ritten

permission of the pulisher! +rinted in the 9nited States of %merica!